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World geography miscellaneous

  1. Foreign currency which has a tendency of quick migration is called
    1. Scarce currency
    2. Soft currency
    3. Gold currency
    4. Hot currency
Correct Option: D

Hot money or currency is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called “hot money” because they can move very quickly in and out of markets, potentially leading to market instability.



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